CKE Restaurants, Inc. (NYSE: CKR – News) announced today period one same-store sales for the four weeks ended February 25, 2008, for Carl’s Jr.® and Hardee’s®. Carl’s Jr. reported a 1.4 percent increase, Hardee’s 1.6. Total blended same-store sales increased by 1.5 percent.
Commenting on the Ccmpany’s performance, Andrew F. Puzder, president and chief executive officer, said, “We are pleased to report positive blended same-store sales of 1.5 percent for the first period of fiscal 2009. While both brands benefited from the introduction of new products near the end of the period, winter storms during the last half of the period reduced what was shaping up to be even stronger results at both brands.”
“Many of our competitors have backed off on their initial efforts to promote premium quality products and have opted to focus on discounting their core products and value-based menus in an effort to drive sales and offset the currently unfavorable macroeconomic environment. We believe this creates an opening for us to reemphasize our superior value and quality which appeals to our core customers who perceive value beyond price alone, as well as those who view our products and price points as favorable to other available dining options, particularly casual dining or fast casual options. We view this as both a sales and branding opportunity which further supports our efforts to distinguish ourselves from the competition.”
Carl’s Jr. reintroduced Chili Cheese Burgers and Chili Cheese Fries on February 20. The burger is available on single, double and Six Dollar Burger(TM) platforms. The single and double versions feature a charbroiled beef patty and the Six Dollar Burger features a 100% Black Angus beef patty. All are topped with beef chili, American cheese, tomatoes, onions, pickles, and mustard. Our Chili Cheese Fries are covered with the same beef chili, topped with melted jack and cheddar cheese and served with a fork. The fries are available as a side item or can be added to any combo for an additional charge. A series of “messy, drippy” commercials for the products debuted during the Academy Awards, the next to the last day of period one. In addition, Carl’s Jr. introduced the unique Cap’n Crunch® shake and continued to promote the Huevos Rancheros Breakfast Burrito(TM), a portable version of the Mexican breakfast classic, during the period.
Revenue for period one from company-operated Carl’s Jr. restaurants (exclusive of franchise-related revenue and royalties) was approximately $46.7 million. Revenue for period one from
company-operated Hardee’s restaurants (exclusive of franchise-related revenue and royalties) was approximately $40.5 million.
For period one, consolidated revenue from company-operated restaurants (exclusive of all franchise-related revenue and royalties) was approximately as follows:Carl’s Jr., $46.7 million; Hardee’s, $40.5 million; and total $87.2 million.
CKE will report same-store sales results for period two of fiscal year 2009, ending March. 24, 2008, on or about April. 2, 2008.
As of its fiscal 2008 third quarter ended November 5, 2007, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,052 franchised, licensed or company-operated restaurants in 42 states and in 13 countries, including 1,121 Carl’s Jr. restaurants and 1,915 Hardee’s restaurants.
